What is SaaS Magic Number? Sales Efficiency Formula & Calculator 2025
SaaS Magic Number explained: formula (QoQ ARR Growth / Prior Quarter S&M Spend), calculator, and benchmarks. Above 0.75 means efficient sales spend.
Tom Brennan
Revenue Operations Consultant
Tom is a revenue operations expert focused on helping SaaS companies optimize their billing, pricing, and subscription management strategies.
Based on our analysis of hundreds of SaaS companies, magic Number is a critical SaaS metric. This comprehensive guide covers everything you need to know: definition, calculation methods, industry benchmarks, and optimization strategies.
What is Magic Number?
How to Calculate Magic Number
Magic Number Industry Benchmarks
How to Improve Magic Number
Frequently Asked Questions
What is a good Magic Number for SaaS companies?
Good Magic Number varies by company stage and business model. Early-stage companies typically have different benchmarks than mature businesses.
How often should I track Magic Number?
Track Magic Number monthly at minimum. High-growth companies often monitor Magic Number weekly or even daily for faster iteration.
How does QuantLedger calculate Magic Number?
QuantLedger uses ML-powered analytics to automatically calculate Magic Number from your payment data, with 95% accuracy and no manual work.
Key Takeaways
Mastering Magic Number is essential for SaaS success. Use QuantLedger to automatically track Magic Number and get ML-powered insights to improve performance.
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